Poll: Where will gas prices peak?

[Lithium]

What do you think the peak gas price in the US will be in 2022? Today it is $4.06 and momentum is building in Congress for a ban on imports of oil from Russia.

[HikingDO]

Thanks Joe….

[Anne]

And the bigger question…at what price will people stop driving across the parking lot from one store to another because they don’t want to walk a tenth of a mile.

[StarTrekDoc]

What's gas?

[CordMcNally]

I accidentally hit the $6.01-$6.50 but I think the $5.01-$5.25 is probably about right. I also imagine the government with attempt *something* (outside of symbolic releases of oil from the SPR) before it gets there.

[Lithium]

I accidentally hit the $6.01-$6.50 but I think the $5.01-$5.25 is probably about right. I also imagine the government with attempt *something* (outside of symbolic releases of oil from the SPR) before it gets there.

Like what? Besides the federal gas tax holiday? Return of national 55 mph speed limits (Where’s Sammy Hagar when you need him)?

I tend to believe you that like the student loan issue Congress and Biden will do just about anything to blunt the short term cost for their electoral benefit this year, but their backs are against the wall.

[Brains428]

Gas is 3.58 here.

The current energy policy is poorly handled by both parties. Hard to keep the hands in more than one pie, I guess.

[Dkthunda]

Gonna take a long time before supply and demand equilibrate. Supply likely to drop further now. $6+ in coming weeks.

[CordMcNally]

Like what? Besides the federal gas tax holiday? Return of national 55 mph speed limits (Where’s Sammy Hagar when you need him)?

I tend to believe you that like the student loan issue Congress and Biden will do just about anything to blunt the short term cost for their electoral benefit this year, but their backs are against the wall.

Never doubt the government's ability to attempt something that has nothing to do with solving the actual issue. I'm sure they're looking into some kind of way (besides the federal gas tax) to 'subsidize' the cost of gas.

[CordMcNally]

Gonna take a long time before supply and demand equilibrate. Supply likely to drop further now. $6+ in coming weeks.

Supply isn't going up anytime soon so demand is going to have to be the thing that gives. I'd be pretty shocked if the average price got to $6 in the next few weeks but stranger things have happened.

[CordMcNally]

Gas is 3.58 here.

The current energy policy is poorly handled by both parties. Hard to keep the hands in more than one pie, I guess.

Things like this are years, and sometimes decades, in the making, but things have really accelerated recently.

[Lordosis]

We don't drive much so the price of filling up the tank doesn't matter much to us. It is all the downstream effects that will impact the most.

[nephron]

The US government has less control over US oil production then people think. There was a marked drop off early in pandemic when oil prices were negative and producers didn't have any place to store what they were making. That caused a lot of manufacturers to go bankrupt. Production is picking up, but the oil industry has the same labor constraints/supply chain difficulties/etc that everyone else has. It's not like a spigot they can turn on and off like it is in some opec countries. If it were due to some specific policy the us had done (stimulus, pipeline restrictions, etc) you wouldn't expect the same or more price increases in other countries. Oil trades in a global market though so it'd be hard to untangle prices in one country from another.
https://www.eia.gov/dnav/pet/hist/Le...s=MCRFPUS2&f=M
You could argue that the administration has not been effective at convincing opec to increase production. Opec countries are not trying to look out western economies. I'm not sure that we'd be better off if we were better "friends" with the bunch anyways.

It'll be interesting to see what effects this will have on electric car usage. I was just reading an article that suggested that these prices are going to be up here for a long time. Oil and gas prices were already going off the rails before this Russian business. I don't see how the market can absorb a 7% loss of production suddenly if they do impose sanctions on Russian oil. Presumably, it would just all flow towards China and other non-sanctioning countries and the market would eventually average out the price everywhere.

[Lithium]

If we see $6 a gallon gas I wonder if that will alleviate the insane prices on ICE automobiles. I have a 14 year old car that is one fender bender away from the junkyard.

[FIREshrink]

No idea
A household stimulus check of $100-$200 per month for 3 months would offset some fuel price inflation. If it was good for Trump it's good for Biden. Wonder if he'll insist his signature be on the checks.

Supply will go up in the short run if we can 'persuade' Saudi, UAE, Venezuela, Iran to help us out. Funny the bedfellows a crisis makes.

It takes 9+ months for US producers to meaningfully increase supply. They need to believe prices next year will be high. Jan 23 futures contract is at $96, that is higher than the spot price in Dec 21 but it's a far cry from today's $125. Remains to be seen if producers will feel that is stable enough to make the capital/rig investments. It won't make any difference for this summer.